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Thursday 27 November 2008
Sacked toy workers clash with police at factory over payouts
Hundreds of sacked factory employees working for a Hong Kong toy manufacturer in Dongguan smashed cars, windows and office equipment on Tuesday night to protest against what they called unfair compensation for their dismissal.
Sacked toy workers clash with police at factory over payouts
Chloe Lai in Guangzhou 27 November 2008
Hundreds of sacked factory employees working for a Hong Kong toy manufacturer in Dongguan smashed cars, windows and office equipment on Tuesday night to protest against what they called unfair compensation for their dismissal.
Peace was restored yesterday morning at the Kader Holdings plant after an all-night standoff between police and factory workers.
Eyewitnesses said production had resumed, although some laid-off workers were still standing outside the factory and the manufacturer had stepped up security.
Kader, one of Hong Kong’s longest-established toymakers, said compensation was being paid according to the terms of the mainland’s labour contract law, which took effect in January. It said it had paid extra cash allowances to redundant employees with outstanding records who had served for more than five years. The confrontation was trigged by the manufacturer’s decision not to renew the contracts of nearly 600 workers early this month.
Hundreds of workers surrounded the factory on Tuesday evening. They flipped over a police car, stormed the plant’s gates and trashed computers. Police moved in and drove away the rioters, reportedly injuring five.
A Dongguan government spokesman said yesterday the crowd broke glass, computers and other equipment. Ten computers were damaged and several thousand yuan was lost, the company added.
But one worker said: “The police pushed us down the stairs. Some of us were bashed in the head, while one male worker had his leg broken.”
Another worker said: “We protested because the company did not pay us what we deserve.”
The company, which employs 7,000 people at the factory, said its financial structure was sound and stable. It laid off around 380 workers on November 19 when their contracts expired. Another group of around 216 workers were told the company would not renew their contracts, which expired yesterday.
According to local media reports, about 80 workers were unhappy with the compensation package because they were not getting the extra cash allowance even though they had worked at the plant for at least five years. Manufacturers have been blaming the labour contract law for triggering labour disputes. They also complain that it has increased their operating costs amid the global financial crisis.
Lobbying has been stepped up in recent months to have the central government revise the law’s provisions and relax restrictions on overtime work. Kader executive director Ivan Ting Tien-li has said the new law increased costs for factory owners. “Now, keeping a big troop of workers is a headache,” he said this year.
But some observers in Guangdong have assailed Hong Kong manufacturers for deciding to close their factories in recent months, saying they took advantage of the financial crisis to evade new responsibilities under the law.
The Financial and Economic Committee of the Guangdong People’s Congress has proposed suspending the law, according to the Nanfang Daily.
The Toys Manufacturers’ Association of Hong Kong estimates 1,000 toymakers will fail by the end of the year due to increased production costs and the global financial crisis.
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Sacked toy workers clash with police at factory over payouts
Chloe Lai in Guangzhou
27 November 2008
Hundreds of sacked factory employees working for a Hong Kong toy manufacturer in Dongguan smashed cars, windows and office equipment on Tuesday night to protest against what they called unfair compensation for their dismissal.
Peace was restored yesterday morning at the Kader Holdings plant after an all-night standoff between police and factory workers.
Eyewitnesses said production had resumed, although some laid-off workers were still standing outside the factory and the manufacturer had stepped up security.
Kader, one of Hong Kong’s longest-established toymakers, said compensation was being paid according to the terms of the mainland’s labour contract law, which took effect in January. It said it had paid extra cash allowances to redundant employees with outstanding records who had served for more than five years. The confrontation was trigged by the manufacturer’s decision not to renew the contracts of nearly 600 workers early this month.
Hundreds of workers surrounded the factory on Tuesday evening. They flipped over a police car, stormed the plant’s gates and trashed computers. Police moved in and drove away the rioters, reportedly injuring five.
A Dongguan government spokesman said yesterday the crowd broke glass, computers and other equipment. Ten computers were damaged and several thousand yuan was lost, the company added.
But one worker said: “The police pushed us down the stairs. Some of us were bashed in the head, while one male worker had his leg broken.”
Another worker said: “We protested because the company did not pay us what we deserve.”
The company, which employs 7,000 people at the factory, said its financial structure was sound and stable. It laid off around 380 workers on November 19 when their contracts expired. Another group of around 216 workers were told the company would not renew their contracts, which expired yesterday.
According to local media reports, about 80 workers were unhappy with the compensation package because they were not getting the extra cash allowance even though they had worked at the plant for at least five years. Manufacturers have been blaming the labour contract law for triggering labour disputes. They also complain that it has increased their operating costs amid the global financial crisis.
Lobbying has been stepped up in recent months to have the central government revise the law’s provisions and relax restrictions on overtime work. Kader executive director Ivan Ting Tien-li has said the new law increased costs for factory owners. “Now, keeping a big troop of workers is a headache,” he said this year.
But some observers in Guangdong have assailed Hong Kong manufacturers for deciding to close their factories in recent months, saying they took advantage of the financial crisis to evade new responsibilities under the law.
The Financial and Economic Committee of the Guangdong People’s Congress has proposed suspending the law, according to the Nanfang Daily.
The Toys Manufacturers’ Association of Hong Kong estimates 1,000 toymakers will fail by the end of the year due to increased production costs and the global financial crisis.
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